American Cuts Ticket Agents

Contract Workers To Replace 65 At West Palm, Lauderdale Airports

September 23, 1994|By L.A. LOREK Business Writer

For 21 years, Georgann Polk of West Palm Beach worked as a ticket agent for American Airlines. Today, the mother of two is looking for a job.

Polk was one of 65 ticket agents in West Palm Beach and Fort Lauderale affected by American Airlines' announcement on Thursday to contract out all airport agent jobs in 30 of the smaller U.S. cities the company serves.

"We've worked hard for this company," Polk, 41, said. "We are not union. We've worked during strikes. Now we're getting slaughtered."

American expects to replace the agents in South Florida with contract employees by April. The agents will be offered jobs in other cities or an opportunity to work for the contractors, said Patricia San Pedro, spokeswoman with American Airlines in Miami.

However, some employees say the contract work will pay only a fraction of what the agents earn now and will not provide health insurance and other benefits. Currently, American ticket agents can make as much as $20 an hour or almost $42,000 a year with health insurance, free flights and paid vacations.

American also plans to contract out some functions at American's hubs and larger cities, including Miami. Those jobs include ticket agents, baggage check-in, baggage service, Priority Parcel Service and cargo. Those changes will take place gradually through attrition and retirement, San Pedro said.

"It's important to note that this will not affect American's flight operations at all," San Pedro said.

American offers five flights daily from West Palm Beach and eight flights daily from Fort Lauderdale. American plans to increase the number of flights it offers to 10 flights daily in Fort Lauderale and West Palm Beach by mid-December, San Pedro said.

Overall, American Airlines plans to replace 550 airport agents nationwide by June 1, according to Robert W. Baker, American's executive vice president of operations. Through the restructuring, American expects to save $35 million in 1995 and is projected to save $130 million a year when fully implemented, Baker said.

American is offering employees who are 45 or older early retirement. Others are being offered a five-year leave of absence without a salary and insurance, but with free flying privileges. All employees hired before 1986 are being offered a lump sum of $12,500 in severance pay.

At American's five reservations offices, work will be reclassified into new job categories, with pay tied to the level of skill required to perform those jobs.

"These changes will help make American more competitive so we can compete with all the other carriers," San Pedro said.

Dallas-based AMR Corp., American's parent company, is trying to cut costs by $1 billion a year in order to compete with low-cost carriers. In many cases, the carrier is forced to offer deep discounts on tickets.

For example, on Wednesday American began offering discount fares that enable two passengers to fly for the price of one.

Labor costs have become the rallying point for American's cost-cutting campaign. The airline is negotiating with its pilots' union to increase productivity without reducing salaries.

American has laid off about 500 pilots this year as it grounds older aircraft and cuts back on unprofitable routes. More pilot cuts are expected before year's end.